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BitMex hit with $300 Million lawsuit

BitMex hit with 300 Million lawsuit

The founder Arthur Hayes of one of the world’s most popular cryptocurrency exchanges, Bitmex is sued for $300 million for snubbing an early investor.

Frank Amato and RGB Coin Ltd. claims to have been the first seed investor of BitMex in 2015. The $30,000 investment whose current value is around $50 million, was later supposed to be converted into equity and they didn’t get that they sued the company and its owner. According to Amato, Bitmex which has employees in California and is registered in the Seychelles gave him incorrect information which led them to this conclusion.

The superior court in San Francisco stated the suit on December 4, 2019 which required an immediate response from the Bitmex but the company didn’t return the request for comment immediately.

Both companies (Amato and RGB Coin) want to regain the value of their equity, more than $50 million, and $250 million in punitive damages. The estimated value of the stake is said to be now valued at about $1 billion.

According to a LinkedIn profile, Amato is a former JPMorgan Chase & Co. commodity derivatives trader while Hayes was formally a derivatives trader at Citigroup Inc. and Deutsche Bank AG.